The paper merchant reported a 2011-12 after-tax loss of $267 million, a 147% year-on-year decline from 2010-11.

In June, Paperlinx forecasted a $171 million loss, but then wrote off $126 million from its European operations.

Revenue declined 12% to $4.1 billion but its net debt improved by 14% to $148 million.

Paperlinx’s share price has fallen from $1.95 four years ago to 7.1 cents at the close of yesterday’s trading and was 6.8 cents at the time of publication.

The past four years have seen such a fall in the share price that the value of the ordinary shares ($171 million) is now less than that of the hybrids ($277 million).

Prominent Paperlinx critic Graham Critchley accused the company of relying on the hybrid security holders to remain solvent and that it would not have been able to survive without this injection of funds.

A Paperlinx spokesperson told ProPrint he was unable to comment ahead of a media briefing this afternoon.

Former chief executive Toby Marchant told ProPrint in April that the company would return to profit by 2014.

The company also said today that it was on track to become a “successful broad-based material supplier” after the recent completion of its year-long strategic review.

The restructure produced a business with less debt, lower costs, more liquidity and a greater focus on products offering higher margins, according to Paperlinx.

Chairman Harry Boon said: “These results reflect a company in transition as we respond to the reality of the continuing structural decline in paper demand, current weak market conditions and the continuing poor outlook in Europe.”

Interim chief executive Dave Allen said “significant progress” had been made over the past year, although much work remained to return the company to profitability.

“In the short term, my priority is to implement the strategy set by the board to execute the restructuring plan and drive the growth and margin of our diversified products, particularly packaging,” he said.

“Our remaining businesses have significant positions in sizeable markets, and with a lower cost base, we are now better positioned to become a successful broad-based material supplier.”

Click here to read about the ups and downs of Paperlinx.

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